WallStSmart

First Watch Restaurant Group Inc (FWRG)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 2099% more annual revenue ($26.88B vs $1.22B). MCD leads profitability with a 31.9% profit margin vs 1.6%. MCD trades at a lower P/E of 25.8x. FWRG earns a higher WallStSmart Score of 56/100 (C).

FWRG

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 4.0Value: 6.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.15

MCD

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.3
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FWRGOvervalued (-14.3%)

Margin of Safety

-14.3%

Fair Value

$14.51

Current Price

$11.27

$3.24 premium

UndervaluedFair: $14.51Overvalued
MCDSignificantly Overvalued (-31.1%)

Margin of Safety

-31.1%

Fair Value

$237.84

Current Price

$311.70

$73.86 premium

UndervaluedFair: $237.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FWRG3 strengths · Avg: 8.7/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

EPS GrowthGrowth
22.9%8/10

Earnings expanding 22.9% YoY

MCD5 strengths · Avg: 9.6/10
Market CapQuality
$219.68B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Debt/EquityHealth
-38.1210/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

FWRG4 concerns · Avg: 3.3/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Market CapQuality
$700.64M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.2%3/10

ROE of 3.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

MCD4 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.742/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : FWRG

The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 20.2% demonstrates continued momentum.

Bull Case : MCD

The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.

Bear Case : FWRG

The primary concerns for FWRG are P/E Ratio, Market Cap, Return on Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.

Bear Case : MCD

The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

FWRG profiles as a growth stock while MCD is a mature play — different risk/reward profiles.

FWRG carries more volatility with a beta of 0.92 — expect wider price swings.

FWRG is growing revenue faster at 20.2% — sustainability is the question.

MCD generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

FWRG scores higher overall (56/100 vs 53/100) and 20.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

First Watch Restaurant Group Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

First Watch Restaurant Group Inc (FWRG) is a leading entity in the fast-casual dining landscape, focusing on breakfast, brunch, and lunch with an emphasis on health-conscious, fresh, and high-quality ingredients. Established in 1983, the company has developed a dedicated customer following through its innovative menu that evolves with culinary trends. First Watch's commitment to outstanding customer service and a distinctive dining experience is complemented by its strategic expansion into new markets, laying the foundation for sustainable growth and enhanced shareholder value in the competitive restaurant industry.

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McDonald’s Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.

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